South Africans have breathed a collective sigh of relief. After extensive campaigns and infinitely examined possibilities, the election is over, votes have been cast and the counting is underway. But now is not the time for anyone to put their feet up, least of all President Cyril Ramaphosa.
The consequences of a downgrade will ripple through the economy like falling dominoes. A sell-off of rands will cause the currency to weaken and inflation to rise as a result of more expensive imports. A rising fuel price alone has the potential to drive inflation across the economy. In a bid to manage inflation, the South African Reserve Bank could increase interest rates.
It goes without saying that the market will not respond positively to the appointment of people tainted by State Capture, corruption and patronage. However, the president has limited choice and has to stick to the ANC’s prescribed list of candidates, with the exception of two positions where he has the discretion to appoint from the outside.The second milestone: Opening of the 6th Parliament
The government’s ability to support growth through capital expenditure has been hampered by SA’s unsustainable fiscal policy, which has resulted in a deterioration of the public sector’s net worth as it accumulates more debt. The country needs to cut expenditure relative to GDP. However, debt continues to increase, with our debt-to-GDP ratio now at 56.2%.
Similarly, simplifying SA’s visa regime has apparently been prioritised, but appears to have been stalled by the director-general at Home Affairs.South Africa is losing ground against the rest of Africa and other emerging tourist destinations, that is evident in the stats,” says Dykes. “Making SA an attractive tourist destination is such low-hanging fruit all you have to do is open your mouth.
Insightful article. 👌
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: Thursday May 2: Five Things You Need to Know to Start Your DayThe Fed stands pat, mostly. U.S. Treasury Secretary Steven Mnuchin calls China trade talks “productive,” and yet another Brexit compromise is brewing. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Friday May 3: Five Things You Need to Know to Start Your DayIndia begins evacuations as Cyclone Fani approaches, Trump and Xi ponder their next meeting, and Tesla plans to raise another $2 billion. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Monday, May 6: Five Things You Need to Know to Start Your DayTrump ramps up the pressure on China with threat of more tariffs and market sentiment takes a hit, while Warren Buffett discusses buybacks and critiques private equity. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Tuesday May 7: Five Things You Need to Know to Start Your DayTrump’s top negotiator confirmed his tariff threat and accused Beijing of reneging on trade commitments. A former Goldman Sachs banker implicated in the 1MDB scandal is in plea talks in the U.S. And China’s own Starbucks rival is seeking up to $510 million in a U.S. IPO. Here are some of the things people in markets are talking about today.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Wednesday May 8: Five Things You Need to Know to Start Your DayU.S. stocks plunged on President Trump’s tariff threats, and Asian equities are poised to follow. Christine Lagarde finds Trump’s presidential tweets “unfavorable.” And it’s shaping up to be a record year for bond defaults in China. Here are some of the things people in markets are talking about today.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Scandal-hit Steinhoff posts $4 bln operating loss for fiscal 2017Steinhoff has reported an operating loss at 3.7-billion euros vs restated profit 278-million euros, blaming writedowns for the loss. The assets are valued at 17.5-billion vs 32.2-billion in 2016 but says its on track to release 2018 results in June
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: South African Assets Signal Rising Anxiety as Election NearsSouth African assets are signaling increasing investor anxiety about Wednesday’s election, with the fate of the rand and government bonds tied to the extent of the ruling African National Congress’ expected majority and what that implies for policy.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business confidence rises on post-election hopesSouth Africa’s business confidence rose in April as retail sales and import volumes improved alongside a firmer currency, a survey showed on Tuesday.
Source: City_Press - 🏆 7. / 72 Read more »
Business leaders offer president tips to grow economy post electionsTo reinvigorate the economy, SA's president needs to prosecute those accused of plundering the government, fix state-owned companies and cut debt, among others, according to business leaders. Fin24 Tip number one: exclude anyone whose wealth has more than quadrupled since the ANC took over. Tip number two: check the hidden wealth of the remaining ANC candidates' families. If there are remaining, check for pulse and other signs of life
Source: News24 - 🏆 4. / 80 Read more »
BUSINESS MAVERICK: Trusts under BEE scrutiny in yet another dramatic policy shiftOne thing certain about SA’s business and economic environment is uncertainty. Targets or policies seemingly set in stone are suddenly not worth the paper they were written on, leaving investors scratching their heads if they are not banging them against walls. This is the case with the sudden U-turn last week by the BEE Commission, which signalled that trusts will no longer count for black participation in ownership structures. Expect corporate SA to draw a line in the sand. Meanwhile, the mining industry, which has had its own issues with trusts, should be out of the line of fire.
Source: dailymaverick - 🏆 3. / 84 Read more »